The first toll road concession company to be listed in December 1996, LITRAK currently derives its income from two highway concessions in the Klang Valley - 100% stake in Lebuhraya Damansara Puchong (LDP) and 50% stake in the SPRINT Highway. LDP is significantly more important between the two, contributing RM368m (RM363m/FY17 & RM288m/FY16) of operating profit to the group in FY18 as compared to the share of loss of SPRINT at RM4.3 (RM5.4m/FY17 & RM12.0m/FY16). In terms of revenue mainly from tolling on the highways, the group collected RM523.9m (RM534.2m/FY17) from the LDP as compared to RM218.6m (RM231.6m/FY17) from the SPRINT Highway in FY18. The significance of the LDP was also reflected by the lopsided asset structure with highway development expenditure (HDE) making up 88% of the group's long term assets as at 31.03.18. Due to its size, a change in the accounting policy pertaining to the amortisation of the HDE from revenue-based to traffic volume-based raised the amortisation charges by RM30.6m y-o-y (or +45.0%) in FY17. The maiden impact of the surge in the amortisation charge on the earnings, however, was offset by RM171m of compensation by the government which single-handedly raised LITRAK's revenue in a year traffic volume dipped in FY17. The compensation which will be non-recurring arose from the government's decision to defer the third and final toll rate hike on the LDP due on 01.01.16 (or 4QFY16) as outlined in the Concession Agreement. Moving forward, the Government's non-approval of the final toll rate hike for the LDP would mean the future revenue growth would be solely dependent on the growth in tollable traffic on the highway.



LITRAK is almost all about the LDP (40 km) which is the most strategically located urban expressway in the country. The 34-year concession for LDP (expiring on 14.08.30) is held via its wholly-owned subsidiary, Lingkaran Trans Kota. Toll collection on the LDP commenced on 25.01.99 (or 4QFY99) and profits from the tolling business has shaped LITRAK's earnings since listing. The LDP begins from the north of Klang Valley near Sri Damansara, passing through the established and densely populated suburbs of Petaling Jaya and new developments in Puchong before ending at the outer rim of Putra Jaya. The highway also forms the western link of KL's Middle Ring Road II. Toll collection is made from 4 toll plazas - Penchala toll plaza, Petaling Jaya toll plaza, Puchong Barat toll plaza and Puchong Selatan toll plaza. The LDP registered an average weekday tollable traffic of 468,000 in FY18 (478,000/FY17 & 493,000/FY16), down by 2.1% y-o-y (-3.0%/FY17 & -1.8%/FY16). Apart from the continung impact of the steep hike in toll rates on 15.10.15 (deferred from the original date of 01.01.11), the management attributed the extended fall in traffic volume to the migration of road users from highways to public transportation following the completion of the Kelana Jaya and Ampang LRT extension lines in June 2016 (or end-1QFY17) and the opening of Phase 1 of KVMRT 1 (Sungai Buloh - Semantan) in December 2016 (or end 3QFY17).



Unlike the LDP, the SPRINT Highway was money-losing for many years since tolling commenced on 09.09.01 (or 2QFY02) and only turned profitable in FY15. The Highway consists of the Duta-Kerinchi Link (11.8 km - 36-year concession up to 2034), Damansara-Semantan Link (9.4 km - 36-year concession up to 2034) and Kg Sg Penchala-Mont Kiara Link (c.5.0 km - 33-year concession up to 2031) with toll being collected from 3 toll plazas - Damansara toll plaza, Pantai toll plaza and Mont Kiara toll plaza. The average weekday tollable traffic on the Sprint highway which dipped marginally y-o-y to 246,900 in FY16 fell at an accelerated pace of 8.5% y-o-y to 226,000 in FY17. The figure dipped further to 221,000 in FY18 (-2.2% y-o-y). The profitable path was a short two years and SPRINT was back in the red in FY17. The share of loss from SPRINT stood at respectively RM5.4m in FY17 and RM4.3m in FY18. The investment in SPRINT only made up 7.7% (RM174.2m) of the total assets as at the end of FY18. Unlike the LDP, there is still one final scheduled toll increase - Penchala Link (in 2019), Damansara Link (in 2022) and Kerinchi Link (in 2022). However, the potential impact is not expected to be significant given its relative

Thats the reason why gamuda shares being going up this few days.

By end march it should reach rm3.50. Many good new coming out soon.

February and March got lots good news coming from gamuda. Read my previous posting and Stay put

Gamuda is making loss on the sales of splash. The money should be taken to cut down its debt. Make it a cash rich construction company and pay decent dividend every years will attract more long term investors

Got news coming soon. Expected to approve by middle of march 2019 and to be announce with good quarterly result report.


We refer to the Company’s announcement dated 14 December 2018 in relation to the Proposals (“Announcement”). Unless otherwise defined, the abbreviations and definitions used in the Announcement shall apply herein.

On behalf of the Board of Directors of Gamuda, RHB Investment Bank Berhad wishes to announce that the listing application in connection with the Proposed Rights Issue of Warrants has been submitted to Bursa Securities today.

This announcement is dated 15 February 2019.

Right issue of warrant of 25sen approving early February. This warrant is worth rm1.00 upon listing. Thats why the reason its shares price going up this few days. Hurry grab now

The profit growth momentum fizzled out quickly in 2Q18 before slipping into the red in the 3Q. Nine months into 2018, the EPS only edged upward y-o-y to 4.01 sen (3.23 sen/1Q18, 1.21 sen/2Q18 & -0.43 sen/3Q18) after deducting gain on disposal of land held for development RM5.8m. A key drag on earnings was the losses of the Property arm held via non-wholly-owned subsidiaries as indicated by a more than doubling in the portion of losses belonging to the minority interest which was added back at the bottom-line. The management cited the adverse effects of high operating cost, depreciation and financing expenses for the EVOLVE Mall amid oversupply of retail space in the Klang Valley. The Construction arm single-handedly contributed to the group’s operating profit which halved y-o-y in 9M18. The EPC contract in Vietnam contributed 94% of the segment’s PBT of RM52.1m despite accounting for slightly less than of the sales. JAKS is expected to continue to rely on the Vietnamese operations to stay profitable in the 4Q. We have to reduce our EPS forecast sharply to 4.50 sen for the whole of 2018.



On the balance sheet, the amount due from customers for contract works as well as trade & other receivable stayed sizeable at RM903m combined or 42% of the total assets as at the date of review. When measured against the sales for the latest four quarters, the days trade debtors (including the amount from customers for contract works) rose past one year (450 days). If based only on the outstanding trade and other receivable, the days trade debtors also appears high at 231 days. Given the significant amount of funds trapped as working capital, the deficit in the net operating cash flow soared to RM94.4m in 9M18. Despite the poor operating cash flow, the financial position of JAKS strengthened as indicated by the net gearing which improved from 0.85x as at 31.12.16 to 0.45x as at 31.12.17 and further to 0.26x as at 30.09.18. The improvement in 9M18 was aided by c.RM68m of cash proceeds from the private placement issue priced at RM1.38 each in the 1Q and net proceeds of RM94.5m from the disposal of land for RM5.8m of profits in the 2Q. In view of the material commitments ahead for the IPP project in Vietnam, we are ruling out a further sharp improvement in the financial strength thereafter. The share subscription in JAKS Pacific Power Ltd, the joint-venture company undertaking the power project amounted to c. USD110.1m or RM447.4m.

In Malaysia, the announcement of a revision in casino duties and casino license fee in the Malaysian Budget 2019 will impact the group’s earnings next year. The group is reviewing its marketing strategies and will streamline its operations and cost structure to mitigate the impact of the tax increases. In the meantime, the group remains focused on the progressive roll out of the new Skytropolis Funland indoor theme park this year. Meanwhile, the group has commenced legal proceedings in relation to the development of the Twentieth Century Fox World theme park. The litigation is not expected to impact the group’s current business operations. In the UK, the group endeavours to continue delivering sustainable performance by strengthening its position in the non-premium gaming business. To this end, the group is committed to improving overall business efficiency and growing its market share in this segment. Additionally, the group is focused on enhancing the operating performance at Resorts World Birmingham as well as growing business volumes at the property. The group will also continue growing its interactive business by improving its product mix and targeted marketing to reinforce its position in this business segment. In the US, RWNYC remains the market leader in terms of gaming revenue in the Northeast US region despite growing regional competition. The group will continue intensifying its direct marketing efforts to increase visitation and frequency of play at the property. Meanwhile, the USD400 million expansion at RWNYC is well underway and is expected to open in phases from the end of 2019. In Miami, the group will continue leveraging on the newly renovated Hilton Miami Downtown Hotel to generate higher spend at the property. In the Bahamas, the group will focus on improving the infrastructure to grow visitation and revenues at Resorts World Bimini. We are maintaining our EPS forecast at 25.00 sen for FY18

EKOVEST actually outperformed heading into FY19 with the 3-month gross profit up y-o-y across-the-board - Construction (+RM1.0m), Property Development (+RM14.4m) & Toll Operations (+RM10.9m)- riding on the back of sharply higher sales (+33%). The growth driver in 1QFY19 was the Property Development arm which posted sharply higher sales (+137%) and gross profit (+85%) y-o-y amid higher progress work done. The group’s operating profit expanded as rapidly as sales, up by RM26m y-o-y but was largely offset by a doubling in interest net interest charges (+RM21m) following the non-capitalisation of the borrowing cost of DUKE 2. Still, the unexpected surge in the profit of the Property Development in a weak market led the EPS higher in 1QFY19 (2.05 sen/1QFY19, (0.14 sen)/4QFY18 & 1.82 sen/1QFY18). We expect the profit performance of the Property arm to be lumpy going forward and have cautiously raised our EPS forecast by 1.00 sen to 4.70 sen.

GKENT has been actively engage in share buy back. The treasury shares has increased to 22.679 million shares (as at 10-1-19) from 9.806 m shares (at the end of 3Q18). Balance sheet is still strong with net cash of RM199.3 m (36.0 sen/share), although much lower as compared to RM343.5 m (70.0 sen/share) as at 30-4-18.

Buy Gamuda NOW. February 2019 many good news coming.

1. Penang Transport Master Plan

  (a) LRT from Georgetown to Penang International Airport. Submitted  scheme to SPAD on 29.03.16 & approval is expected in March 2019. EIA report submitted to DOE on 18.05.17 and approval is expected in February 2019.

  (b) Pan Island Link 1 Highway. Approval is expected in February 2019.

  (c) Penang South Reclamation. Final EIA report submitted to DOE on 15.08.17. Approval is expected in February 2019. 

2. Expressway - 40% owned Splash sold to PUAS for RM2.55b in FY18. The upfront payment of RM1.9b is expected to be received in February 2019 and the balance RM650m will be settled in 9 equal annual instalments.  

3. PROPOSED RIGHTS ISSUE OF WARRANTS is expected to be approved by Bursa in early February

4. EPF and ASB have been raising stake in the past 4 months.

January 2019 (up to)

15.01.19 - EPF raised stake to 11.76%

10.01.19 - ASB raised stake to 5.03%

December 2018 (up to)

27.12.18 - EPF raised stake to 11.47%

November 2018 (up to)

22.11.18 - EPF raised stake to 11.34%

October 2018 (up to)

30.10.18 - EPF raised stake to 11.12%